July Jobs Stimulus

Temporary acceleration of Corporation Tax loss relief

Section 11 of the Financial Provisions (Covid-19) (No. 2) Act 2020 introduced a new section 396D in the Taxes Consolidation Act 1997. Section 396D provides for a temporary acceleration of corporation tax loss relief for accounting periods affected by the Covid-19 pandemic and related restrictions. 

It allows companies:

  • to estimate their trading losses for certain accounting periods
  • and
  • to carry back up to 50% of those losses against chargeable profits of the preceding accounting period on an accelerated basis.

The manual 'Corporation tax: Accelerated loss relief for companies adversely impacted by Covid-19 restrictions' (Part 12-03-05) provides:

  • guidance on the operation of section 396D
  • and
  • information to companies on how they may make a claim for the relief.

Next: Temporary Income Tax relief for self-employed individuals carrying on a trade or profession